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June 12, 2008
No Worries As Dreamworks Catches A Downgrade
An analyst I know well, Michael Morris of UBS, downgraded Dreamworks Animation (DWA) this morning driving the shares down more than 7%. I added a little to some smaller client positions on the weakness. The downgrade is based on Morris' belief that even after after raising his outlook for Kung Fu Panda the shares are slightly overvalued. Obviously, I disagree. I think Michael's valuation target and estimates are conservative. Supporting my case is the fact that through Tuesday, Panda is tracking almost exactly equal to Cars which grossed $$244 million in North America. Michael adjusted his DWA model by increasing his gross from $170 to $200 million. The upcoming second weekend will be critical to determining the ultimate North American gross for Panda but I remain very confident it will be comfortably north of $200 million.
Posted by Steve Birenberg at June 12, 2008 09:53 AM in DWA
MICC IS UP $4 IN A DOWN MARKET.IS ANYTHING POSITIVE GOING ON?
Posted by: mp at June 16, 2008 10:17 AMI can't find any news or research on MICC from any of my usual sources.
Posted by: Steve at June 16, 2008 10:27 AMSTEPANEK IS ONCE AGAIN QUESTIONING CME'S CZECH COURT VICTORY.DO ANY OF HIS COMPLAINTS HAVE ANY IMPORTANCE WITH REGARD TO CME AT THIS TIME OR ARE THESE COMPLAINTS JUST THE RABBLINGS OF A DISGRUNTLED LOSER?
Posted by: MP at June 17, 2008 07:49 AMStepanek is meaningless. Nothing more than a bad headline on occasion because the journalist does not know what is going on. He is merely to trying to save his own ass in a private lawsuit that has nothing to do with CETV.
Posted by: Steve at June 17, 2008 07:51 AMTHE MARKET IN GENERAL AND INDIVIDUAL STOCKS IN PARTICULAR ARE IN A TIGHT TRADING RANGE E.G. MICC IS MOVING AIMLESSLY BETWEEN 113 AND 121.IT IS A VERY DISAPPOINTING MARKET IN WHICH IT IS DIFFICULT TO MAKE MONEY.
Posted by: MP at June 17, 2008 09:06 AMI agree that this is a difficult market in which to make money but that is what happens when you get a trading range within a bearish environment. I continue to believe that this environment will remain for most of the rest of this year and possibly further. I also continue to believe that if we broke out of the trading range in the very near future it would more likely be down than up. The best thing to do is keep your position sizes smaller than usual and your cash reserves larger than usual until a clear trend emerges. If a new uptrend starts there will be plenty of time to make money so no need to htry to pick the bottom or the breakout point.
Posted by: Steve at June 17, 2008 09:15 AM